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Friday, February 17, 2012

SENIOR MARKET ATTRACTS MORE SYSTEMS BUILDERS

With healthcare costs rising and the Great Recession still putting a
crunch on many peoples’ wallets, senior housing options such as
“transitional housing” or so-called “Granny pods” may emerge as a viable
alternative to entering a senior care facility, or at the very least,
could serve to delay an eventual move-in.

Select modular factories throughout the country are producing
small dwellings that can be constructed on another home’s property, most
often in the backyard. Some of these structures are designed
specifically for seniors with the idea that instead of going to some
sort of facility, or moving into an adult child’s home, the senior can
maintain some independence while still being close to family.

Another systems builder has entered the market. Pacific Modern Homes has just introduced a kit version of the "Granny Pod" and is showcasing it on their website.

Pacific Modern Home "Granny Pod"

In tough economic times, family-managed care can be the answer, says Kenneth Tupin, CEO of N2Care and creator of the MedCottage.

“We do not think that the MedCottage is a replacement or in lieu of
nursing homes,” he says. “There will forever be that need; this is just
an alternative for that. It’s for the people that want to participate in
family-managed care, [although] we think that most people will still
need home health care of a similar service to supplement the
responsibility.”

MedCottages are small (288-square-feet), modular buildings that can
easily be placed on a homeowner’s property and hooked up to the main
house’s water and electric utilities. They’re designed with seniors in
mind and include technology that incorporates motion detection and
interactive monitoring.

MedCottage

The prototype for these structures was created about a year and a
half ago, with the first model created nine months ago. N2Care recently
had its first purchase, and the placement will take place in the next
couple of weeks in Virgina, in the Washington, D.C., area, Tupin says.

The MedCottage costs about $85,000, and can be sold back to the
distributor once its occupant passes away or moves out. “It’s a value
proposition, because nursing home care is much more expensive,” says
Tupin. “In Virginia, distributors have to purchase them back. It’s an
asset you can sell, and if you’ve had it for two years, you can sell it
back for about $36,000.”

It’s a “great tool for wealth preservation,” Tupin says, because it allows families to define and control the cost.

“With nursing homes or even assisted living, it is almost financial
consumption, meaning that it isn’t satisfied until it has consumed
almost all of your wealth,” he says.